Giant Motorsports Reports Higher Second Quarter Sales and Earnings

Pretax Income Rises 37% From Prior-Year Levels

SALEM, Ohio, Aug. 22 -- Giant Motorsports, Inc. (BULLETIN BOARD: GMOS) (the "Company"), an operator of retail power sport superstores in the Midwestern United States, today announced its operating results for the second quarter and first half of 2006.

For the three months ended June 30, 2006, sales increased 10% to $38.0 million, compared with $34.7 million in the second quarter of 2006. Finance, insurance and extended service revenues rose 21% to $1.4 million, versus $1.2 million in the quarter ended June 30, 2005. Total revenues were up 10% to a second quarter record of $39.4 million, compared with $35.8 million in the prior-year period.

Pretax income increased 37% to $1,730,956 in the second quarter of 2006, compared with $1,263,191 in the prior-year period. Net income attributable to common shareholders increased to $1,143,956 in the most recent quarter, compared with $1,090,191 in the three months ended June 30, 2005. The Company earned $0.11 per basic share ($0.07 per diluted share) in the second quarter of 2006, versus $0.10 per basic and diluted share in the year-earlier quarter. The weighted average number of basic shares outstanding totaled 10,862,160 in the second quarter of 2006, compared with 10,428,297 in the second quarter of 2005. The weighted average number of diluted shares outstanding totaled 17,537,160 in the three months ended June 30, 2006, versus 11,428,297 in the corresponding period of the previous year.

"Higher retail sales of motorcycles and other power sport products at our two superstores more than offset a reduction in sales of our products to other dealers and distributors, thereby allowing our gross profit margin to widen to 15.2% in the second quarter of 2006, from 12.9% in the year-earlier quarter," stated Greg Haehn, President and Chief Operating Officer of Giant Motorsports, Inc. "I am very pleased to report that income from operations improved 34% and our pretax income rose 37% from last year's second quarter. The percentage gain in net income was more modest, reflecting an effective income tax rate of approximately 34% in the most recent quarter, which was up substantially from an approximate 14% effective tax rate in the second quarter of 2005."

"Our goal is to become one of the largest dealers of power sports vehicles in the United States through internal growth and selective acquisitions," continued Haehn, "and I am pleased that we were able to significantly improve our operating performance during the most recent quarter. Sales at both locations benefited from larger facilities and an expansion in store hours. Increases in cable TV and print advertising have positively impacted our retail sales, which generate higher gross profit margins than wholesale transactions, and we expect the resultant shift in sales mix to have a positive effect on operating profitability during the remainder of 2006."

For the six months ended June 30, 2006, sales increased modestly to $55.8 million, compared with $55.1 million in the corresponding period of the prior year. Finance, insurance and extended service revenues rose 38% to $2.0 million, versus $1.5 million in the first half of 2005. Total revenues increased 2% to $57.8 million, compared with $56.5 million in the prior-year period.

Pretax income increased 9% to $789,804 in the first half of 2006, compared with $724,981 in the prior-year period. Net income attributable to common shareholders declined to $237,282, after the payment of $126,722 in preferred dividends, in the six months ended June 30, 2006, compared with $551,981 (no preferred dividends) in the six months ended June 30, 2005. The Company earned $0.02 per basic share ($0.01 per diluted share) in the first half of 2006, versus $0.05 per basic and diluted share in the year-earlier period. The weighted average number of basic shares outstanding totaled 10,698,476 in the six months ended June 30, 2006, compared with 10,426,657 in the first half of 2005. The weighted average number of diluted shares outstanding totaled 17,323,476 in the six months ended June 30, 2006, versus 11,408,314 in the corresponding period of the previous year.

About Giant Motorsports, Inc.

Giant Motorsports, Inc. is a retailer of new and used motorcycles, all- terrain vehicles (ATVs), scooters, parts and accessories, extended service contracts, and aftermarket motorcycle products. The Company's two superstores, which are located in Chicago, Illinois and Salem, Ohio, also include service departments and arrange financing for customers. The Chicago store operates under the name "Chicago Cycle" and the Salem store operates under the name "Andrews Cycles".

The Company is headquartered in Salem, Ohio, and its common stock is listed on the OTC Bulletin Board under the symbol "GMOS". Additional information is available on the Internet at www.giantcorporate.com, www.andrewscycles.com and www.chicagocycle.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this press release. A wide variety of factors that may cause actual results to differ from the forward-looking statements include, but are not limited to, the following: sales of the Company's motorcycle and power sports products; the implementation and expansion of the Company's business strategies; competition and the timing of projects and trends in future operating performance, and other risks discussed in the Company's periodic report filings with the Securities and Exchange Commission. These cautionary statements should not be construed as exhaustive or as any admission as to the adequacy of the Company's disclosures. The Company cannot always predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes," "expects," "anticipates," "intends," "estimates," "plans," "projects," or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. The Company does not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.